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Inadequate regulation of predatory lenders unacceptable - Morgan

9 October, 2007


Sinn Féin’s Economic Affairs spokesperson Arthur Morgan TD has demanded government action to crack down on predatory lending by the growing sub prime lending sector.  Morgan also demanded action by government to deliver adequate social and affordable housing for those currently being pushed towards unsuitable mortgage options.

 

Deputy Morgan said:

 

“There is clear evidence of a substantial increase in predatory lending in this state.  People are already getting into very serious difficulty.  There are a growing number of cases being taken by sub prime lenders whose customers get into difficulty.  On Monday alone there were 39 such cases before the high court.  

 

“While sub-prime lenders are regulated under the Consumer Credit Act 1995 this legislation is clearly not adequate as there is growing evidence that borrowers are often not aware of what type of mortgage product they have bought into. This is unacceptable.

 

“Sinn Féin is demanding that, in addition, the factors which are pushing people towards taking up these ethically questionable type mortgages being offered by the sub prime sector need to be addressed.  Clearly the lack of social and affordable housing is one of the primary factors which push people in the direction of predatory lenders.

 

“The Government is being utterly irresponsible in it’s failing to properly regulate the sub prime sector and in turn protect the welfare of vulnerable borrowers.  We will all suffer if the government fails to properly regulate the sub prime sector.  What has happened in the United States in the financial sector in recent months is evidence of the potential economic instability that a growing sub prime sector brings with it.” CRÍOCH

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